Matt Mohammed, a Muslim Arab-American and a former Navy Seal, bought a Willys Donuts franchise in Florida after retiring from the Navy. Willys Donuts has over 500 franchisees, and its franchise agreement states that all franchisees must offer menu items as directed by Willys Donuts, and that the failure to do so could result in the immediate termination of the franchise.

Mr. Mohammeds franchise was very successful, and every year he received an award from Willys Donuts for being one of the top 10% of its franchisees. Five years later, Willys Donuts changed its menu; among the changes included breakfast sandwiches with bacon, ham, or sausage. Mr. Mohammed refused to sell these items at his store on the ground that his religion forbade the handling of pork.

Mr. Mohammed then opened a second franchise, at which he also refused to sell pork products. Mr. Mohammeds franchises continued to be successful. When Mr. Mohammed proposed to relocate the new franchise, Willys Donuts refused to approve the new location and informed him that it would not renew his franchise agreements because he did not carry the full sandwich line.

Do you believe that Willys Donuts was justified in its decision to terminate the franchises?